Our new Disciplinary Process Management Services!
Why is it critical to get the disciplinary process right?
To protect yourself against the payment of Severance Allowance
The Workers’ Rights Act provides that –
Where a worker has been in continuous employment for a period of at least 12 months with an employer,
The termination of agreement of the worker was in contravention with some specific sections of the Act,
the Court may order that the worker be paid a sum equivalent to 3 months’ remuneration for every period of 12 months of continuous employment as severance allowance (and a proportional sum for any additional period of less than 12 months).
Example 1
An ex-employee having a mere 5 years continuous employment and with a remuneration of Rs 25,000/- only per month, and whose employment has been terminated in breach of the Workers’ Rights Act would be entitled as follows:
3 X Rs 25,000 X 5 years = Rs 375,000.
Example 2
An ex-employee having 10 years continuous employment and with a remuneration of Rs 50,000/- per month, and whose employment has been terminated in breach of the Workers’ Rights Act would be entitled as follows:
3 X Rs 50,000 X 10 years = Rs 1,500,000.
- Protection against payment of one month’s remuneration in lieu of notice
The employees above would also be entitled to a sum equivalent to one month’s remuneration in lieu of notice.
- Protection against Punitive Interest on severance allowance awarded
Employers should also consider that when giving judgment, the Court may order an employer to pay interest at a rate not exceeding 12% per annum on the amount of severance allowance payable calculated for the period as follows –
- from the date of the termination of the agreement,
- to the date of payment of the severance allowance (as ordered by the Court) by the employer to the ex-employee.
In Example 1 above, 12% per annum would be equivalent to Rs 45,000. as interest every year which goes by.
In Example 2 above, interest only will be a whopping Rs 180,000. per annum. Now imagine a situation where a case has taken 4 years to be heard and judgment delivered. Sufficient to make many organisations go out of business.
Our Disciplinary Process Management Services
Need any more convincing why you must get your disciplinary process right? With our HR partners, we handhold you during the disciplinary process from the moment you discover suspected disciplinary issues.
Our services include –
- – Advising you on the appropriate action (whether the issue requires a formal disciplinary process or an informal process) ,
- – Advising you on legal time frames and delays,
- – Advising you whether to suspend the employee or not,
- – Drafting of the letter of suspension,
- – Supervising a thorough and fair inquiry into the allegations,
- – Drafting of the letter of charges with request for written explanations,
- – Analysis of the explanations of the employee,
- – Advising on the constitution of a disciplinary committee if need be,
- – Ensuring a proper set up for the disciplinary hearings,
- -Advising on witnesses and evidence,
- – Record keeping,
- – Ensuring fairness during the disciplinary hearings,
- – Advising on the findings of the disciplinary committee,
- – Drafting of the letter of termination if need be,
- – Follow up and debriefing,
- – Managing your preparation in case of litigation before a Court.